PriceSmart Sells $47.8 Million of Common Stock

During $7 Rights Offering Exercise Period

San Diego, CA, January 27, 2005 – PriceSmart, Inc. (NASDAQ:PSMT) today announced that it sold approximately 6,827,542 shares of its common stock for aggregate proceeds of $47.8 million pursuant to the exercise of subscription rights during the $7 exercise period of its previously announced rights offering. The $7 subscription period ended on January 24, 2005. All rights distributed by PriceSmart in the rights offering that have not yet been exercised may be exercised at an exercise price of $8 per share at any time prior to 5:00 p.m. New York City time on December 21, 2005.

This announcement is neither an offer to sell nor a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or foreign jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or foreign jurisdiction. A registration statement relating to these securities has been filed with and has been declared effective by the Securities and Exchange Commission.

About PriceSmart

PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Central America, the Caribbean, and the Philippines, selling high quality merchandise at low prices to PriceSmart members. PriceSmart now operates 26 warehouse clubs in 12 countries and one U.S. territory (four each in Panama and the Philippines; three in Costa Rica; two each in Dominican Republic, El Salvador, Guatemala, Honduras, and Trinidad; and one each in Aruba, Barbados, Jamaica, Nicaragua and the United States Virgin Islands).

For further information, please contact Robert E. Price, Interim Chief Executive Officer at (858) 551-2336; or John M. Heffner, Executive Vice President and Chief Financial Officer at (858) 404-8826.